stand against the social network's expansion. >> a new accident on 101, details coming up. high pressure now headed east temperatures beginning to cool down a little fog beginning to show up, too. we'll have more on that coming up. good morning, everyone. it's thursday, first week of january, almost in the books. i'm frank mallicoat. >> i'm grace lee. it is 6 a.m. we begin with tensions peaking this morning at "occupy oakland." >> we have seen it before. right now "occupiers" are trying to regroup after police in riot gear made several arrests overnight. anne makovec live with how it all got started over a teepee. anne, good morning. >> reporter: good morning. all over a teepee that had been here at frank ogawa plaza for several weeks. as you mentioned, a number of arrests overnight. the police are not telling us exactly how many arrests have been made. and you can see there are about maybe a dozen people camping out here and they are not being hassled by police. that is after this confrontation at around

midnight following the temporary permit for the teepee being revoked on monday. here's some video protestors took and posted on the internet overnight after police moved in into the plaza add around 11:30. there had been a few confrontations with police since the teepee was erected in late october. an officer was injured on friday. he was hit in the head by a chair. and the teepee was meant to serve as a reminder of the months-long occupation at the plaza this past autumn. police say protestors weren't following the permission. permit, the teepee could only stand between 6 a.m. and 10 p.m. and they could not store personal belongings. they also weren't supposed to distribute food from the area. but this morning, they say they weren't breaking any rules and they are not going anywhere. they're lies. what rules? what rules can possibly govern the proper maintenance of a teepee? i mean, the teepee is because we can't have our village here

any more. we can't be in snow park, anywhere. >> reporter: now, police have custody of the teepee. they took it down overnight. there is a lawyer for the "occupy" protestors who say you don't need a permit to exercise your first amendment rights and is now planning on filing a lawsuit on their behalf. >> the movement is still going. >> reporter: it is a sign of that. but obviously, we have seen it peter out significantly. a couple of months ago there were about 200 tents here in the plaza. now we have about a dozen people camping out. >> all right, anne makovec live for us over in oakland this morning. thank you. meanwhile, marin county man and a suspect a third his age are recovering this morning after a shootout. the intruder convicted in the door yesterday morning. we first told you about this at noon yesterday. and he held 90-year-old jay leone at gunpoint while he searched the apartment for valuables. leone managed to sneak away, grabbed his .38-caliber revolver and shot the suspect

three times. leone was shot once in the face. a real-life cliffhanger. a man suspected of stealing a ring from an apartment tuesday night on telegraph hill took off ended up on the cliff there near chestnut street. that's where he has been for almost 36 hours now. the man has been defiant. police have been communicating with him but the police are concerned their presence could cause him to fall over the edge so they have backed off. facebook had run into a legal roadblock as it plans to put thousands of workers in their new headquarters. gil diaz is in menlo park to explain why the company is now making some frenemies. good morning to you, gil. >> reporter: hi, grace, good morning. this is facebook's new home, the old sun microsystems campus. as you can see behind me, a big thumbs up sign in its main entrance but according to the east palo alto city council, the move is a big thumbs down. the city is concerned about facebook's quick expansion into their neighborhood.

now, the networking site has about 2,000 workers already at the location. but it plans to hire over 6,000 by the year 2015. neighbors are upset about the possible traffic jams and housing shortages that this might produce. they are also concerned facebook won't share the wealth with this struggling community. >> already struggling in this area already with housing so wow, it's going to be an impact, that's for sure. >> they should consider other people's, you know, situations and the traffic and what have you before they decide to make this change. >> it's very important to this community that we take those issues seriously. >> reporter: so facebook has addressed some of these concerns. it's offered to limit the number of cars parked on its lots. it's going to encourage workers to carpool or even take mass transit to work. they even offered to help pay for roads or street improvements. as for the east palo alto city council, they are going to be meeting at a special closed

session this morning at 9:00. back to you guys. >> see if they get any "likes." all eyes are on mitt romney with the new hampshire presidential primary just five days away. he is coming off a narrow victory in iowa. eight votes. yesterday in new hampshire, got a big endorsement from arizona senator john mccain, who by the way of course was the gop nominee back in 2008. romney's heavily favored in the granite state which borders his home state of massachusetts. rick santorum's campaign got another million dollars in donations after his close second place finish in iowa. >> we can move up and show momentum here too. >> rick perry decided to stay in the rates, expected to do very -- rick perry decided to stay in the race, expected to do very well. this woman, michele bachmann who finished sixth in iowa, dropped out. starting to get busy on the roads, gianna. >> it is. we have first reports of an accident in the south bay.

northbound 101 right at capitol expressway, no word if any lanes are blocked. chp arriving on scene of the checking speeds there, though. still moving up to speed, lots of green there, hopefully not causing too much of a problem. the rest of the south bay problem-free. bay bridge toll plaza no metering lights yet but you can see the fastrak users are moving better as you head towards the pay gates past the metering lights and up the incline into san francisco. altamont pass business as usual. 17 minutes now to go from the altamont pass to 680. that's traffic. here's lawrence. >> gianna i had a chance to walk outside and enjoy sunshine, spring-like temperatures. today ridge weakening and an onshore breeze kicking in will cool down the temperatures a bit. numbers outside right now, yup, it's chilly in spots. 39 degrees in oakland. 39 also in livermore. and 35 with some patchy fog into the santa rosa area. by the afternoon, though, we

will enjoy some sunshine again. a little fog toward the coastline, 50s there but temperatures into the mid-60s in the warmest spots today. looks like the next couple of days these temperatures coming down still running above the average but as we look toward the weekend offshore winds going to kick in and that means we're seeing more sunshine and warmer temperatures, maybe some of those numbers near 70 degrees by sunday afternoon. so guys, a good day for a walk again as we head toward the weekend. >> you nearly went to oakland yesterday, didn't you? >> it was so gorgeous. i almost kept going. >> i got a text from him. where are you, grabbing a bite to eat. where are you? i'm on the bay bridge! >> i didn't want to stop. 6:07. a huge money saving strategy shift today. we are going to explain the pentagon's new plan. >> an 8th grader shot and killed by the police while at school. the weapon he brought that fueled this controversy. >> there is no reason for -- >> who hasn't dozed off on a flight? the big mistake though that got a teen lost on his way to grandma's.

authorities say a man opened fire on them when they served a in utah, one officer is dead and five others are wounded. authorities say a man opened fire on them when they served a

search warrant last night at a home in ogden. the suspect is in the hospital with a gunshot wound. authorizes say the officers. are anti-drug police. 6:11. some outrage in texas where police shot and killed an eighth grader while in school. officers in brownsville say the boy pointed a weapon at them. it looked like a gun but it turned out to be a pellet gun. now, a spokesman says the 15- year-old student had plenty of opportunities to lower the weapon. but he didn't want to. police say he had punched another boy in school. there is a $2,500 reward to help catch a man wanted for an attempted kidnapping out of oakland. police have a sketch of the suspect. he is accused of trying to grab a 9-year-old boy in the north oakland hills the day after christmas. the boy managed to get away. he says the suspect was in his 30s, about 5'6", 160 pounds, with short black hair and a light mustache. careful when you catch your

snooze. how a teen's airplane nap turned into a dilemma. >> wrong city. and a money saving makeover for our military. huge cuts president obama is announcing today that will save nearly a trillion dollars.

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welcome back now. 6:1. here's a check of some of the top stories here in the bay area. oakland police had another showdown with the "occupiers" overnight at the frank ogawa plaza. several "occupiers" have been arrested. police say they were in violation of their permits. first hispanic to be elected to san francisco's district attorney will be sworn in this afternoon. this man, the ceremony for george gascon, will be at 5:00 at mission high school. and president obama will make a rare appearance at the pentagon today. he will join defense official in outlining a new strategy for a leaner u.s. military. the proposal expected to include plans to cut tens of thousands of ground troops and invest more in air and sea power. bombs targeting shiites killed at least 72 people in iraq today. a suicide bomber blew himself up next to a large group of shiite pilgrims who were walking to the holy city of karbala. according to a provincial security cheap that attacked killed 48 and wounded more than

81. it came hours after a series of explosions in two shiite neighborhoods leaving two dozen people dead. the death toll is the largest in a single day since the u.s. withdrew in december. it is 6:16. and we are going to talk about traffic now. >> thank you very much. let's head over to the south bay where we're monitoring this accident northbound 101 in san jose at capitol expressway. two cars involved. it's over in the center divide. but looks like traffic is still moving okay along 101 as you head northbound. no delays southbound. chp and tow crews are on scene so might see some slight delays once they move that over to the right shoulder. now, the rest of the south bay still lots of green no delays to report at 880/237 or here in our live look at northbound 280 through downtown san jose. we are seeing a bit of a backup at the bay bridge but mostly in the cash lanes, no metering lights just yet. once you go the past the slow lanes things are clear up the incline into san francisco. no delays on the lower deck but there is roadwork scheduled starting around 7:00 this morning. altamont pass, 17 minutes now

to head westbound if you are headed towards 680. sluggish at the 680 interchange, as well. and our speeds are getting even slower through antioch westbound dipping under 25 miles per hour between hillcrest and loveridge but again the good news is once you hit pittsburg it looks better and no delays towards the eastshore freeway. now, we're still monitoring this trouble spot in the napa county area. airpark road at airport boulevard there is a jackknifed big rig blocking lanes. they have tow crews on scene. southbound 101 out of marin county, no troubles here. clear through san rafael. over towards the golden gate bridge. and moving right along into san francisco. and 880 both directions actually starting to see some extra volume. northbound a little sluggish approaching the maze. southbound moving well, slight delays as you approach the 92 connector. mass transit though always a good choice. we have 47 trains plus on bart right now. that's traffic. lawrence, i'm spoiled with all this nice weather. >> it has been something else. it's not going to rain, it might as well be nice. we have seen it the last couple

of days, temperatures 12 degrees above average. we'll cool down a bit today, still above average and a nice afternoon. sea breeze kicking in so patchy fog and partly cloudy skies inland and at the coast. today cooler but more sunshine on the way for the weekend. guess what, high pressure builds right back in again. and those temperatures warming up. 39 degrees in livermore, 39 in san rafael, 34 in the napa valley and 48 degrees in san francisco. it looks like a pretty nice day around the state as we are going to keep things dry and into the valley, patchy, dense fog early on. hazy sunshine this afternoon. 62 degrees, mostly sunny in the monterey bay. that ridge of high pressure that brought us those very warm temperatures yesterday now sliding eastward just a bit so a cooling trend in effect but most of the energy from these systems continues to run over the top of the ridge so we are going to stay dry, passing clouds coming our way and cooler temperatures.

numbers in the south bay today into the mid-60s morgan hill. 61 san mateo. east bay temperatures up into the 60s, as well. inside the bay, hazy sunshine, 50s at the coast, 60s inside the bay. next couple of days, looking good. cooler temperatures around the bay area but above normal. and we'll warm things back up on saturday and sunday staying dry for at least the next five to seven days. >> but your models say in like 21 days it might sprinkle or something? >> by the 20th, yeah, looks like we are going to see a pattern shift. that's what i'm looking for is a whole trough to develop along the west coast allowing the generally to drop and we'll finally see storms coming in. >> we had lawrence do a little bit of reading during our holiday lights story so we are going to have him do it again because it went so well. >> i'm supposed to read this. >> this is you. an amazing sight this morning in italy. am i looking at the right camera? thank you very much. if you are by the tv, check out

mount etna. human plumes of smoke. snow on the top -- that's why you see the smoke because of the ice melting and vaporizing. the eruption breaks a 50 day dry spell. >> i'll stick to the weather center. >> way better than the holiday lights. that's all i'm going to say, lawrence. [ laughter ] there is a plan under way to change runways at sfo that don't meet federal safety standards. the designers are trying to figure out how to use a spongy material at the ends of the runways with small safety areas. it's crushable concrete at the end of runways to stop aircraft overruns. the project will be completed by the end of 2015. all right. we have an arizona boy that spent part of his holiday break wandering around st. louis because he dozed off on his flight to tulsa. he woke up in st. louis.

the 15-year-old boy was settling in on his southwest flight from phoenix going to visit his grandmother in oklahoma but got too comfortable on the plane. >> just put my headphones in and fell asleep. >> the child wakes up in st. louis with no family, no money, no cell phone and no help. >> i saw one of the security guys so i talked to him and told him my situation and he said he couldn't do anything. >> he wandered around for 24 hours in st. louis before a good samaritan helped him call home. now his grandmother is calling southwest, getting a promise to check policies about children traveling alone. >> 15, you think eric might have just hit a stranger up, can i use your cell phone for a moment? what city are we in? you know? 24 hours? i think it was probably more of a road trip for him. wow, st. louis. see you in a couple of days, granny. anyway. 6:21. got milk? what's buying the squeeze on the organic high and how much more it's going to cost you to drink it. >> and it can be the best or worst moment of a man's life. the public proposal that went horribly wrong.

coming up.

be one step closer to developing a vaccine against h- i-v. in health news scientists may be closer to developing a vaccine against hiv. they tested a new experimental vaccine on monkeys and found that it provided partial protection against infection. in monkeys that were already infected, the vaccine reduced the amount of virus in the blood. researchers in boston are now

planning tests on people. expect to pay even more if you like the word organic on your carton of milk because of a nationwide shortage because of a smaller supply and increase in demand. the cost of organic grain and hay for feeding cows has risen sharply but the price farmers get for milk hasn't followed suit. as a result, farmers don't feed their cows as much leading to higher prices. it could go up to 4.39. apparently takes a lot for a man to pop the question. >> that's the truth. i remember the day. so you can imagine how bad this guy feels after he popped the question and the video went viral. watch. after the long, awkward silence... gasps f >> well, he asked. the proposal showed on the jumbo screen at a pavilion at ucla during a basketball game just before christmas. i don't think he liked the

answer after a long awkward silence. you can hear the crowd gasping. there she goes. the girlfriend says, eh, maybe not. she walks away. a ucla spokesman says it was not staged. it was legit. >> oh. >> poor guy. >> what did she say? >> well, there you go. she said no, back to you. some exciting changes coming to cbs news. >> starting monday, the new cbs this morning debuts. it has charlie rose, gayle king, and, of course, erica hill. >> we got a chance to talk with the new crew and what we can expect coming up next week. >> by the time you have watched us from 7 to 9, you will at least leave your house or staying home for the day, you will know what's going on in the rest of the world, what happened overnight, what you may want to look forward the rest of the day and what's going on. we intend to cover all the bases. >> tomorrow we're going to hear their favorite things about the bay area and by the way, they have some connections here

which is pretty good. cbs this morning starts monday at 7:00 right here on cbs 5. >> they say they love san francisco and the bay area. >> erica used to live here and gayle grew up here. good stuff. they cut back on police, fire and city services. this morning, the new proposal to slash san jose's budget deficit. and stopping the search for a cliff caper. why a burglary suspect here in the city may have won the standoff on telegraph hill. and arrests made overnight after a confrontation between "occupy oakland" and police over a teepee. tell you what's next coming up. facebook has a new home but one of its neighbors not too happy about the move. coming up we'll tell you why east palo alto wants to sue facebook.

your realtime captioner is linda marie macdonald. good morning, everyone. it is thursday, january 5. good to have you with us. i'm frank mallicoat. >> i'm grace lee. chp has turned on the metering lights on the bay bridge so traffic is stacking up more than right now. we are slow and go mostly in the cash lanes. fastrak okay but slow and sluggish up the incline, as well. also delays through the

altamont pass. details on that coming up. here's lawrence. spring-like weather around the bay area the last couple of days. temperatures in the 60s and 70s. cooling trend is in the works. we'll talk about that and the rest of the forecast coming up. 6:31. tension peaks this morning as "occupy oakland" sparks up again. several arrests were made this morning. anne makovec reports from oakland. >> reporter: there is no police presence here this morning at frank ogawa plaza. you can see about a dozen people camping out not being hassled by police. that is after they had erected a teepee here. a teepee that had been here for weeks with the temporary permit. that permit was revoked on monday so the police moved in to take it down. police moved into the plaza around 11:30. there have been a few

confrontations with police since october. an officer was injured on friday hit in the head with a chair. this teepee was supposed to serve as a reminder of the month-long "occupying" at the plaza this autumn. protestors weren't following the condition of the permit, standing we 6 a.m. and 10 p.m., no personal belongings and no food distribution. the protestors said they weren't breaking rules and they said they are planning on staying. >> we're not doing anything other than eating and sleeping. what kind of rules -- i read the police report that came out about the teepee for the public. i mean, yeah, it's native american land. but i mean, you know, we're not going anywhere. >> reporter: lawyers for the protestors say you don't need a permit to exercise your first amendment rights. he is planning on filing a lawsuit on their behalf to protect the teepee.

again, police said that there were several arrests overnight. they have not said exactly how many or what the charges were. the protestors say they plan to meet again here at 2:00 this afternoon. grace and frank? >> we'll wait for the next move. all right, thank you. it is 6:33. a 90-year-old world war ii veteran in marin county fought back when an armed suspect broke into his home yesterday morning. now, the intruder kicked in the door and held jay leone at gunpoint. but leone, a former fighter pilot, grabbed a .38-caliber revolver and shot the suspect three times. police have backed off from a burglary suspect who ended up on a 200-foot cliff in san francisco. the man is suspected of stealing a ring from an apartment tuesday evening on telegraph hill. police say the building manager chased the suspect who hopped over a railing on a wall apparently unaware his path dead ended in a cliff there at

chestnut street. he jumped on the cliff and hung out. the man has been defiant ever since and police are concerned their presence could cause him to go over the edge or perhaps fall. officers now just keeping an eye on the situation. facebook faces the threat of a lawsuit this morning. gil diaz is down in menlo park where the social network's new neighbors are not too happy about the company's expansion. he joins us with more. gil, good morning. >> reporter: hi, frank. good morning. well, whenever a company moves and expands, it usually is good news. but facebook, its next-door neighbor east palo alto not welcoming them with open arms. so this morning the city council will meet in a special closed session to consider suing facebook. that's because they are worried that the move will cause problems in the area like traffic headaches and housing wars. 2,000 workers already here at the new facebook site. but facebook plans to hire 1,000 more each year for the

next six years. facebook set up a gigantic thumbs up symbol at its main entrance but east palo alto giving the big thumbs down. >> facebook is expanding into a campus that's right up against east palo alto's borders so east palo alto's likely to feel the effects of that on traffic and housing and other issues that can impact the community. >> since it's in menlo park the tax base won't be helping east palo alto. >> reporter: facebook has responded to the concerns and to that possible lawsuit saying that it hopes that east palo alto will see the enormous benefits to having a good responsible neighbor like facebook. and the company also has offered to tell its workers to share rides to take mass transit to work, even walk so that traffic congestion could be a minimum here. >> hopefully they can figure it out. gil diaz live in menlo park. thanks. if you are planning on commuting along the bay bridge,

brace yourself. it's getting busy. >> sure is. it's that time of the morning. gianna? >> yeah. we get a couple of hotspots out there. the altamont pass, bay bridge and this accident we have been monitoring in san jose. northbound 101 at capitol expressway is over in the center divide. we are still seeing okay speeds but chp may have to run a traffic break to clear it to the right side so that will probably slow you down a bit. the rest of the south bay a bright spot even though we are seeing some extra volume northbound 280 through downtown san jose. bay bridge you can see traffic starting to stack up quite a bit backed up to the first overpass mostly in the cash lanes. slow up the incline, as well. gets a bit better into san francisco. drive times are unching up. slow and go away from 205 on the westbound side through livers and sluggish approaching the dublin interchange. we'll check mass transit next. >> great weather the last couple of days, lots of sunshine. patchy fog develop out toward

the coast. it's ail chilly start to the day in some parts of the bay area too. 39 in oakland right now, 39 in livermore and 35 degrees in santa rosa. this afternoon, enjoying some sunshine except right at the coast, patchy fog at the beaches and 50s. hazy sunshine in the valleys. next couple of days temperatures come down. but an offshore wind will warm temperatures back up through sunday before cooling off toward the beginning of next week. that's a look at weather. back to you. >> thank you. all eyes are on mitt romney with the new hampshire presidential primary just five days away. and he is coming off a very narrow victory in iowa. yesterday in new hampshire, though, he got the endorsement from arizona senator john mccain, who was the gop nominee in 2008. romney's heavily favored in the granite state which borders his home state of massachusetts. rick santorum's campaign got a big boost, another million dollars in donations after his close second place finish in

iowa. back to mccain. he spoke about the 2012 race for the white house on today's "cbs early show." >> well, i think that it's very much time to select our nominee and to move forward into the general election mode. this is going to be a very tough fight. i feel very strongly that mitt romney is the candidate that can defeat president obama. and i also think he has conducted an excellent campaign and i agree with him on almost every issue. so i'm proud to endorse him and support him. >> you can watch the full interview on "the early show" at 7:00 right after this newscast. 6:38 now. mayor reed and the san jose city council have been pushing for pension reforms to save money. and now they are look at their own retirement plans. kcbs radio's matt bigler joins us now to explain what they might have to sacrifice, as well. matt, good morning. >> reporter: hi, frank. good morning to you.

yeah, basically they would sacrifice their own pension plans. this is a proposal from council member pete constant that would essentially drop the pension plan for city council members and for the mayor. as you mentioned, the backdrop to all of this is that at the same time, mayor chuck reed has proposed cutting pension benefits for city employees in order to save services. this proposal would qualify later this month -- could be considered by the city council later this month but make chuck reed said dropping their own pension plan will be easier said than done requiring some back and forth with calpers. >> we start this process by adopting a resolution and that goes to calpers, and then they do whatever they do, send it back to us and then we can decide whether or not to take action based on their analysis. >> reporter: now, most cities and counties in the bay area do have a pension plan for elected officials. and in many cases, it's more generous than san jose's.

san jose gives elected officials 2% of their salary for every year of service once they retire. but other cities, san francisco for example, that percentage is 2.3% of their salary for years of service and oakland is 2.7%. again, the council will look at this later this month and there is a proposal to put a ballot measure on the june ballot to trim salaries i should say, that would trim pension benefits for city workers. that's the latest from san jose. back to you guys. >> thank you, matt bigler. two men and their young sons are safe and sound on ground right now after they were rescued off the coast sydney, australia. >> the plan was to go hundreds of miles offshore to fish and they traveled about five miles, the boat caught on fire, they jumped in the ocean clinging to a cooler. they activated a beacon and rescue helicopter arriving within 45 minutes. >> anything that floats at that point apparently they had life vests on too but -- >> you remember what the

cooler is called down under? >> no. >> eski. like an eskimo. renewed concern on wall street the overseas crisis outweighing positive signs here in the states. >> plus, hot reviews about a movie based during the cold war. liam mayclem has his take on "tinker tailor soldier spy." and the market just opened 10 minutes ago. let's take a quick look at the early numbers. and unlike earlier this week, we are down out of the gate but plenty of time. kcbs moneywatch reporter jason brooks will have more coming up.

metering lights are on at the bay bridge toll plaza and we are seeing delays to mid lot so give yourself some extra time. sluggish up the incline, as well. to avoid those delays, use mass transit. bart about 50 trains on time right now. ace, muni, caltrain, ferries, all checking in problem-free this morning. now, we have first reports of an accident along 680 in the sunol grade blocking lanes. we'll have details on that in my next report. right now looking live at the golden gate bridge where you can see traffic starting to get a bit busier. drive times are still okay.

south 101, 12 minutes from 580 to the toll plaza. speeds dipping to the red there meaning below 25 miles per hour on 580 westbound headed toward the dublin interchange better. you can see traffic improving as you approach that area and again an accident along 680 near the sunol grade blocking the number 3 lane. that's traffic. here's lawrence. >> a lot of sunshine coming our way again today. changes though. the sea breeze is going to be kicking in. instead of those offshore winds is that brought us spring-like temperatures, cooler around the bay area today, not bad. cloudy at the coastline right now. mostly clear inside the bay. and we have had some scattered reports of fog in the valleys. a little cooler outside for today but more sunshine, looks like high pressure going to start building in over the weekend. temperatures now chilly in santa rosa. [ laughter ] >> temperatures in the state

running into the 60s in the central valley there. patchy fog early on. high pressure building in eastward and this system is going to slide in. cooling trend in effect. those temperatures coming dunn across the board around the bay area buy still well above the average this time of year. east bay temperatures into the 60s by the afternoon with sunny skies. and as you get inside the bay well see hazy sunshine as high as 62 degrees in oakland and about 65 degrees in santa rosa. we have some cooling weather over the next couple of days but toward the weekend that ridge builds back in. offshore winds will start to cause breezes over the mountaintops, otherwise dry for the next five to seven days. >> just trying to cut you down to size. >> about time, huh. >> looks like the meteorological form of "elf." the number of americans signing up for jobless benefits continues to fall. this morning, numbers could be' preview of tomorrow's jobs report for the month of december. here now to talk about it, jason brooks with kcbs and cbsmoneywatch.com. good morning. >> reporter: good morning,

frank. good morning, grace. we're starting to see a positive trend with the jobs market. that's very important. weekly claims down 15,000 to 3 72,000. that was the fourth drop in the past five weeks. we couple that with a report from private payroll tracker adp, they say there were 325,000 new jobs created in december. that's a lot more than expected, about 100,000 more than what occurred in the prior month according to adp. they upwardly revised their predictions there. as far as tomorrow's report goes, he economists are expecting a gain of about 150,000. there are the weekly claims right there. and the unemployment rate rising. adp doesn't always synch up with the reports. retailers reporting sales numbers from december most of them reporting decent numbers. we are getting reports of a couple of local chains, as well, gap and roth stores. another tough month for the gap down 4% across the three major

chains, worse than expected. ross saw 9% gains, more than doubling what analysts were expecting for ross. stock market unable to capitalize on the job market picture. unfortunately, there are renewed concerns about the european debt crisis and how banks there can handle that crisis going forward. so we have some red numbers out there. dow down 115. nasdaq down 16. s&p down 11. >> still time, though. still time. >> reporter: plenty of time. we'll see what happens. thank you. a photographer pioneer preparing to file for bankruptcy. eastman kodak is expected to file for chapter 11 in the coming week if it's unable to sell some of its digital imaging patents. their stocks tumbled to an all- time low of just 48 cents a share on wednesday. hard to believe. it could be taken off the new york stock exchange if it doesn't rise above a dollar in the next six months. sign. times, digital cameras killing kodak, sign of the times.

whether you like to catch waves or flicks, there's something for everyone this weekend including a concert with some guitar legends. liam mayclem joins us now with some great treats for the weekend. >> reporter: yeah, good morning, guys. good morning, pleasure seekers. we will start with movies and this first film may well be the best film of the year. "tinker tailor soldier spy" is a rather dense thriller riddled with plot twists and turns to keep you guessing and wondering from beginning to end. the story centers around the circus, not a clown nor a monkeyer elephant in sight. the inquire us is is in fact code for the top ranging boys in blue at scotland yard, britain's fbi. it was adapted from a best- selling book by john lecarre. it was set in cold war era britain a tale familiar to many a popular bbc tv series. gary oldman here as a fading paranoid agent, george smiley and he never smiles, but he does give the performance of his career. this two-hour epic is a must-

see with a strong supporting cast that includes colin firth and john hurt. "tinker tailor soldier spy" -- >> "tinker tailor soldier spy..." >> well done. i highly recommend it. [ laughter ] pillar point is the place to be for the 2011 mavericks surf contest big wave riders abound. there is a difference this year. number one, organizers say it will be safer, bit of a travesty last year, nobody died thank goodness. but safety first. second big thing is a charge to watch. if you want to get up close, 25 bucks the basic ticket all the way to $1,000. and that big ticket gives you vip access allowing you to mingle with the surfing stars. grace, look at you. [ laughter ] >> grace look there. >> her hawaiian roots coming out there. >> she is always about the surfing sport, not the surfing dudes. they will have the biggest purse in surfing. when i first thought about

this, i thought it was handbag. talking about money. thrilling, always a mob scene on the coast. mavericks starts friday 2:00 pillar point near half moon bay. it's the place to be for that. there he is. the wrinkled rocker grateful dead bob weir. >> wow. >> this guy, one of the greatest guitarists in one of of the greatest outside bands of all time because the grateful dead were outsiders but ever so popular. they are hometown boys. he is pairing up with bruce hornsby for a night of music this march, tickets on sale tomorrow. you can see the event march 31 at the fox theatre in oakland. look at that. that was new year's eve. somehow, i managed to get back stage, thanksmy good buddy jc, and i got to hang with bob very briefly on new year's eve at the show "further" in san francisco. >> what a sweet shot. >> will be on the set about 3 a.m. and about six red bulls in. >> you can the slits in your eyes there. >> me and bob on the tour scene.

((ad lib drivers license)) ((ad lib car on roof)) http://www.youtube.com/ >> that's your liam's list. >> we have a treat for you. you had a big week. >> congratulations are in order for you after 16 years without a license. take a look at this! [ laughter ] >> ladies and gentlemen, no more excuses! mayhem is on. a lot of people horrified or -- >> where did you take that picture of me? >> we also dug up some video. your first parking escapade ended up like this! [ laughter ] >> you guys are too funny. that's not me. by the way -- >> this is in the richmond district after you just got your license. [ laughter ] >> you guys are too funny. i lived have fear 16 years. it's always a joke especially with the "eye on the bay" crew, come on, liam, get a license. so i did it. i'm now on the roads look out. >> right side of the street. >> exactly. [ laughter ] oh, gosh, nobody

told me that. thanks. [ laughter ] >> cheers, guys. time now is 6:52. a showdown at "occupy oakland." >> police in riot gear take over frank ogawa plaza. why this battle started over a teepee.

people end up in handcuffs.. you can call it a teepee takedown. "occupy oakland" protestors and police squaring off overnight and several people end up in handcuffs. anne makovec says "occupiers" are trying to regroup. >> reporter: good morning. thermiting at 2:00 this afternoon -- they are planning to meet at 2:00 this afternoon to decide their next move. a dozen people are here and police nowhere to be found. overnight several people arrested because the temporary permit for the teepee was revoked on monday. here's some video protestors posted on the internet overnight after police station moved into the plaza at around 11:30. and as i mentioned, there have been a few confrontations with police since the teepee was erected in late october. here's a picture of the teepee. it was to serve as a reminder of the months-long occupation at the plaza this past autumn. but police say protestors were

not following the conditions. permit, that the teepee could only stand between 6 a.m. and 10 p.m., and that it could not store personal belongings. the protestors were also not allowed to distribute food and police say they were breaking all of these rules. the protestors do have a lawyer. he says he is going to file a lawsuit to protect the teepee and he says, they don't need a permit to exercise their first amendment rights. >> thank you, anne makovec live for us over in oakland. the east palo alto city council could decide this afternoon to sue facebook. now, the issue is facebook's new headquarters in neighboring menlo park. east palo alto is worried about traffic, housing and other issues. facebook currently has 2,000 employees at its menlo park campus but that could top 6,000 in the next two years. president obama is set to make a rare appearance at the pentagon in just a little while from now. he will join defense officials in outlining a new strategy for a leaner u.s. military. the proposal is expected to include plans to cut tens of

thousands of ground troops and invest more in air and sea power. 6:57. we got a little weather and traffic. get you out the door. we kick it off with gianna. >> it's getting busy out there. so give yourself extra minutes. we have an accident brand-new southbound 680 at andrade roadblocking lanes and you see that yellow on the screen. sensors are showing slow speeds approaching the accident so depending how long chp takes to clear it, expect some delays. altamont pass sluggish westbound 580 mostly through livermore. you will see slightly better speeds as you hit 680. antioch loaded up westbound less than 25 miles an hour towards loveridge. big rig problem stuck in labels at airpark rote and airport -- stuck in lanes at airport road and airport boulevard in napa county. tow crews removing it. golden gate bridge not too bad. a little extra busy as far as volume goes. but no accidents or delays out

of marin county. lawrence? >> gianna, spring-like temperatures starting to weaken somewhat as we are seeing 60s and 70s the last couple of days, today probably only the mid-60s but it's the dead of winter. did you know that? >> yes. >> you can hardly tell. it's been spectacular. we'll cool off through friday. great weekend. we have a lot of sunshine coming our way, cooling off monday and tuesday. >> no changes. >> no major changes in the works, yeah. for the next few days. >> i'm okay with that. >> we need rain but... [ laughter ] >> nice weekend. are you kidding me, 68? >> went out for a walk yesterday. >> did you? >> yeah, i did. >> a little stroll. >> nothing compared to your walk, mr. karnow. you made it almost to oakland. >> why not? i could have gone all the way across the bay. >> if you see a guy on the bay bridge with size 14 feet, that's lawrence karnow. [ laughter ] >> not gianna. >> no.